So Monday was bull that hit the wall. A rally from previous 2 months started off the week with a pull back. Some might connect today’s activity to a sell off. But that is not the actual reason. There was a real light volume on the markets today and the lack of buyers competing for share caused for drop in prices.

There was little economic news on Monday which did not motivate people to go into the markets in the capacity seen for the last few weeks. A pull back is not uncommon and should not be a cause for panic as its early. (GM) is about to file bankruptcy and did pull the auto stock down and all connected stocks.

A lot of the banks have started to raise capital on the markets by diluting the shares. This was a reason for the bank stocks to all come down. Now look at the stock I picked from my two, (C), that one pulled back less than most of the others like (BAC) for instance. Its still above my entry price.

Also note that on Monday, the US dollar did rise against the Canadian dollar. I mentioned that on Sunday this would be a play worth watching. More should come as the run up on the Canadian dollar was too much too fast and due for a corrective drop.

Here is the market summary for Monday:

Tuesday Watch:
Economic Indicator
7:45AM Weekly retail sales
8:30AM Trade Balance for March.
9:40AM Job Openings Survey for March.
2:00PM Treasury Budget for April.

News worth Reading:
Updates, advisories and surprises. Link.

Happy Investing!

Aman, MBA

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